China restricts its banks to use or accept Bitcoins – any virtual currencies

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Considering as a threat to its financial stability and the threat of easy money laundering, China seeks ban on Bitcoins and restricted all Chinese banks to use or accept the first ever popular cryptocurrency.

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China is not alone, even the United States also concerned about the growth of Bitcoins, a virtual digital currency that has grown its exchange value from $0.30 (two years ago) to $1200 as of now. It is also said that the China has more demand in virtual currency, which also the part of the rise of Bitcoin.

People’s Bank of China and four other Chinese ministries and agencies together issued the restriction and said in the statement that it restricting Bitcoins in banks “protect the status of the renminbi (Chinese Yuan) as the statutory currency, prevent risks of money laundering and protect financial stability.”

South China Morning Post reported that the Chinese Yuan is the largest traded currency in global Bitcoin trades, where it said,

“Fortunes have already been made in China via the virtual currency. The value of a bitcoin in China soared 861.02 per cent from 844.75 yuan on September 3, the earliest data available on BitcoinAverage, to its peak value last Friday of 7273.47 yuan.”

Bitcoin value was jumped to $1200 after the remarks of U.S. officials in senate and after more and more merchants are accepting the virtual currency in their online stores. Current worldwide market value of total bitcoins generated is more than $11 billion. But, the value is plunging and jumping between $1100 and $1200 in last few days, which also suggests that, similar to stock market, the virtual currency could also boom and burst – and that may be any day!

Another main reason for the growth of the Bitcoin value is said to be the maximum total numbers of the cryptocurrency can be created, which is limited to 21 million units. Hence, the investors are bidding up the price as the demand to have this currency grows.

However, the statement also said,

“Ordinary members of the public have the freedom to participate in Bitcoin transactions as a kind of commodity trading activity on the Internet, provided they assume the risks themselves.”

Okay now, if the U.S. and other global countries release the similar statements with restrictions, then the value of Bitcoins, Litecoins, Primecoins or any other cryptocurrency will be plunging to a new low ever. What is your opinion?

About Wayne Murphy

Writer and specialized in Mobile Phones (iOS, Android, BB etc), who was with the TND team since it's inception. Other than Blogging, he is also pursuing his graduation on Business Management at CA, California University. All posts by Wayne